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To: Box-By-The-Riviera™ who wrote (187631)	8/13/2002 7:29:35 PM
From: Roads End	Read Replies (1) \| Respond to of 436258

corporate-ir.net\reit_tax.htm' REIT Tax Information for 1999-2001 1999 The company's reportable 1999 REIT dividends totaling $1.14 per share of Common Stock are classified for income tax purposes as follows: $.5915 (51.888%) per share is classified as Return of Capital (Non-Taxable Distribution) and $.5485 (48.1112%) per share is classified as a 20% Rate Capital Gain Dividend on the 1999 Form 1099-DIV. 2000 The company's reportable 2000 REIT dividends totaling $2.28 per share of Common Stock are classified for income tax purposes as follows: $1.3439 (58.9449%) per share is classified as Return of Capital (Non-Taxable Distribution) and $.9361 (41.0551%) per share is classified as a 20% Rate Capital Gain Dividend on the 2000 Form 1099-DIV. The Excel spreadsheet (click here) can assist in calculating your taxes as a REIT for the years 1999 and 2000. 2001 If you were a Plum Creek shareholder for the entire year, you will have received dividends of $2.85 per share during 2001. This amount is classified for income tax purposes as follows: (1) Ordinary Dividend - $1.0109 (35.4690%); Capital Gain Dividend - $1.4230 (49.9306%); and (3) Return of Capital - $.4161 (14.6004%). If you became a Plum Creek shareholder as a result of the merger with The Timber Company (TTC) and held your stock the remainder of the year, you will have received dividends of $1.14 per share during 2001. This amount is classified for income tax purposes as follows: (1) Ordinary Dividend - $1.0109 (88.6725%); Capital Gain Dividend - $.0999 (8.7646%); and (3) Return of Capital - $.0292 (2.5629%). Please note that any dividends you received from TTC prior to the merger are not included in these amounts and will be reported to you separately. These percentages do not apply if you held varying amounts of Plum Creek stock throughout the year. Please see the Excel spreadsheet (click here) to estimate the taxable components of each of our five distributions made during 2001. The taxable component of our 1999 and 2000 dividends was designated solely as capital gain dividend. The reason that part of the 2001 dividend is designated as an ordinary dividend relates to Plum Creek's merger with The Timber Company on October 6, 2001. Under applicable tax rules pertaining to REITs, Plum Creek was required to distribute the historic earnings and profits of The Timber Company by December 31, 2001. Distributions of these earnings and profits are considered to be ordinary dividends. Please note that 85.4781% of the 2001 capital gain dividend (reported in Box 2a of Form 1099-DIV) is considered "qualified 5-year gain" and is reported in Box 2c of for Form 1099-DIV from Plum Creek (be careful not to double count this amount). This is a new item on this year's Form 1099-DIV. You may be taxed at a reduced capital gains rate on this amount if you are in the 15% or lower tax bracket. You may have additional qualified 5-year gain if you sold your Plum Creek stock in 2001, and you held it for 5 years (including your holding period on any TTC stock that was converted to Plum Creek stock as a result of the merger). Please see the instructions to Schedule D of 1040 or consult your tax advisor regarding your ability to get the reduced capital gains rate. You should consult your tax adviser to determine what impact, if any, these allocations may have on your tax situation for the current tax year or in future years.